WH Smith slashed its earnings guidance after uncovering an accounting error that overstated profits in its North American business by roughly £30 million. The travel-retail group now expects group pre-tax profit of about £110 million for the fiscal year ending 31 August, well below analysts’ consensus of nearly £157 million, and has reduced the North America division’s profit outlook to £25 million from £55 million. Investors reacted sharply, sending the shares down more than 30%—at one point nearly 40%—to their lowest level since the pandemic hit in March 2020. WH Smith said the misstatement stemmed from supplier-income being booked too early and has appointed Deloitte to conduct an independent review. The disclosure comes just two months after the company sold its legacy U.K. high-street chain, leaving the faster-growing North American travel outlets as its second-largest business segment.